Say “Goodbye” to Merchant Service Fees
Cash Discount Program
Eliminate credit card fees with our cash discount pricing option. Our program allows you to legally share your credit card processing fees with customers by offering a discount for those paying with cash and a fee for those paying with credit.
What is a Cash Discount Program?
We boost your bottom line by implementing a processing fee for customers that choose to use credit instead of cash. This allows you to save money on merchant processing fees without increasing the overall rates of your products and services. Essentially, your posted rates will be the rates for credit rates, while customers that choose to pay with credit will see a small line-item added to their final receipt. While this is cents on the dollar for your customers, it can add up to thousands of dollars in savings for your business every year. Our unique methods follow the guidelines presented by Visa, Mastercard, and other major credit card providers.
Have more questions? See the FAQ below or give us a call at 866.257.0502
No worries. If you do not like the program for any reason, we can immediately revert your payment solution to traditional interchange pricing.
The Cash Discount Program is ideal for businesses that have hundreds of small transactions per day (think coffee shops, gas stations, convenience stores, etc.). For businesses that have high ticket sales, we recommend our traditional merchant processing services.
Simple. Paying with a credit card incurs processing fees. By eliminating these fees (a few cents a transaction), a cash discount can save a business thousands of dollars every month. We eliminate monthly processing fees for small businesses. For example, think about a convenience store or coffee shop. The average ticket price is generally not going to exceed $10. For credit cards or debit cards charged as credit, the interchange cost to you is .05% plus $0.22 for every transaction – before any processing fees. Think about that $5 transaction; that $0.22 is effectively 4.45% of that sale. Compare this to a business that deals with higher-ticket prices such as $100: that is an effective rate of 0.027%, which is a substantial difference in profit ratio. These numbers add up, which is why many low-ticket businesses utilize this program.
The short answer? No. Currently we operate well within the Mastercard and Visa service rules; while the laws regulating a cash discount program may change in the future, everything we do is by the book.
For example, take a look at the stipulations regarding Visa’s views on cash discounts:
From Visa Core Rules and Visa Product and Service Rules – 22 April 2017
“22.214.171.124 Discount Offer – US Region and US Territories In the US Region and a US Territory, a Merchant may request or encourage a Cardholder to use a means of payment other than a Visa Card or a Visa Card of a different product type (e.g., Visa Classic Card, Visa Traditional Rewards Card, Visa Signature Card) than the Visa Card the consumer initially presents. Except where prohibited by applicable laws or regulations, the Merchant may do so by methods that include, but are not limited to:
- Offering the consumer an immediate discount from the Merchant’s list, stated, or standard price, a rebate, a free or discounted product or service, or any other incentive or benefit if the consumer, who initially presents a Visa Card, uses instead another general purpose payment card or another means of payment.
- Communicating to consumers the reasonably estimated or actual costs incurred by the Merchant when a consumer uses a particular general purpose payment card or means of payment or the relative costs of using different general purpose payment cards or means of payment.”
Since you’ll have signage stating that your price carries a 4% service fee, when someone pays with cash, they are receiving a discount off of the stated price, not a percentage increase when they choose to pay with a credit card. This is not a surcharge and Visa, Mastercard, and the courts have all agreed upon this distinction following a 2013 ruling.
From Mitchell Katz, the spokesman for the Federal Trade Commission: “the Dodd-Frank law prohibits a payment card network such as Visa ‘from inhibiting the ability of anyone to provide a discount for payment by cash, checks, debit cards, or credit cards,’ said Katz. “Neither surcharging, nor a cash discount is illegal.”
Take Charge of Your Business.
Want to find out how much money you can save with our Cash Discount Program?
It’s easy. Send us a credit card processing statement and we’ll forward you a complimentary savings analysis that is unique to your business.